Is Invesco S&P 500 Equal Weight ETF (RSP) a strong ETF right now?

Designed to provide broad exposure to the Style Box - Large Cap Blend category of the market, the Invesco S&P 500 Equal Weight ETF (RSP - Free Report) is a smart beta exchange traded fund launched on 04/24/2003.

What are smart Beta ETFs?

For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.

Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.

But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund sponsor and index

The fund is sponsored by Invesco. It has amassed assets over $73.7 billion, making it one of the largest ETFs in the Style Box - Large Cap Blend. RSP, before fees and expenses, seeks to match the performance of the S&P 500 Equal Weight Index.

The S&P 500 Equal Weight Index equally weights the stocks in the S&P 500 Index.

Cost & Other Expenses

For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.

Annual operating expenses for RSP are 0.20%, which makes it on par with most peer products in the space.

The fund has a 12-month trailing dividend yield of 1.57%.

Sector exposure and top holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

Representing 15.7% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Information Technology round out the top three.

When you look at individual holdings, Warner Bros Discovery Inc (WBD) accounts for about 0.36% of the fund's total assets, followed by Western Digital Corp (WDC) and Advanced Micro Devices Inc (AMD).

The top 10 holdings account for about 2.99% of total assets under management.

Performance and risk

So far this year, RSP return is roughly 10.07%, and it's up approximately 3.34% in the last one year (as of 11/27/2025). During this past 52-week period, the fund has traded between $152.93 and $192.11.

RSP has a beta of 0.99 and standard deviation of 14.56% for the trailing three-year period. With about 509 holdings, it effectively diversifies company-specific risk .

Alternatives

Invesco S&P 500 Equal Weight ETF is a reasonable option for investors seeking to outperform the Style Box - Large Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.

iShares Core S&P 500 ETF (IVV) tracks S&P 500 Index and the Vanguard S&P 500 ETF (VOO) tracks S&P 500 Index. iShares Core S&P 500 ETF has $728.68 billion in assets, Vanguard S&P 500 ETF has $799.48 billion. IVV has an expense ratio of 0.03% and VOO changes 0.03%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - Large Cap Blend